Editors' pick: Originally published Dec. 8.
As you approach retirement or help those you love prepare for their golden years, one major financial question always comes: What insurance do you really need?
The answer is that your need for insurance typically doesn't go away in retirement. You still need to protect your health, home, vehicles, liability and life.
There are optimal ways to manage your insurance needs and save money in retirement, but you're going to need a plan first. Don't wait until you actually get into retirement to create a battle plan for your household insurance needs. Instead, plan now, just as you're stashing away cash for your post-career years.
Before you leave the workforce, make sure you know the answer to five key questions:
1. Do I need life insurance in retirement?
If you work during retirement, as many Americans expect to do, and have family who depend on your income, you need a life insurance policy to protect your loved-ones after you're gone. Even if you don't have dependents, you may want to name a favorite organization or charity to receive a payout after your death.
But if you're not working in retirement, and your loved ones are financially self sufficient, life insurance isn't a necessity and you can save money by letting it lapse.
2. Do I need auto insurance in retirement?
It's a myth that auto insurance costs rise after retirement. Without exception, younger drivers pay more for car insurance than any other demographic. For instance, a 60-year-old single male driver is paying, on average, 59% less for auto insurance than his 20-year-old counterpart.